Dhaka stocks edge up on GP, financial shares

DSE extends trading time by 30 minutes for today

Dhaka stocks inched up on Tuesday after losing in the previous two sessions as a section of investors went for bargain hunting targeting the financial shares and Grameenphone.DSEX, the key index of the Dhaka Stock Exchange, added 0.06 per cent, or 3.82 points, to close at 5,543.93 points on Tuesday after losing 34 points in the previous two sessions.The market was choppy during the day as investors were active on both sides of the trading fence, market operators said.They said investors shrugged off the Bangladesh Bank data on defaulted loans and went for bargain hunting targeting the financial sectors after their recent fall.The media reported on Tuesday that as per Bangladesh Bank data released on Monday, the defaulted loans in the country’s banking sector neared Tk 90,000 crore by the end of June as amount of such loans soared by 20.23 per cent or Tk 15,037 crore in the first six months of this year.The average share prices of non-bank financial institution, bank and telecommunication sectors gained 0.61 per cent, 0.58 per cent and 0.57 per cent respectively.Out of the 30 traded bank scrips, 19 advanced, six declined and five remained unchanged, while out of the 23 traded NBFIs, 19 advanced, four declined and one remained unchanged.The share prices of Grameenphone rebounded by 0.40 per cent after losing in the previous three sessions.Market experts said that investors were seen rebalancing their portfolios every other day that reflected their lack of confidence over the market.The overall market scenario was negative as the share prices of most of the large-capitalised stocks declined amid sluggish turnover.The average share prices of textile, engineering, cement and miscellaneous dropped by 1.00 per cent, 0.58 per cent, 0.55 per cent and 0.28 per cent respectively after gaining in the previous session, while the share prices of energy sector continued falling with 0.70 per cent decrease on Tuesday.The turnover on the DSE slumped to Tk 714.08 crore on Tuesday compared with that of Tk 965.35 crore in the previous trading session.‘The market showed slow movement amid investors’ profit-booking tendency but finally managed to slide into green zone by the end of the session, which was mainly triggered by investors’ expectation towards the bank sector,’ said EBL Securities in its daily market commentary.Meanwhile, the DSE on Tuesday extended trading hours by 30 minutes to 3:00pm for today. The trading schedule will revert to usual hours (10:30am-2.30pm) from tomorrow.DSE officials said the bourse made the time extension decision as the DSE shareholders and senior officials of different brokerage houses and merchant banks would attend the Bangladesh Securities and Exchange Commission’s silver jubilee celebration programme that begins 10:00am today.They said the trading hours were extended for today to compensate for any possible trading disruption due to the absence of the DSE shareholders and senior officials of different brokerage houses and merchant banks at their trading stations on the day.Prime minister Sheikh Hasina is expected to attend as chief guest the inaugural ceremony of the week-long programme at the Bangabandhu International Conference Centre in Dhaka. Finance minister AMA Muhith will attend the ceremony as special guest.Of the 335 companies and mutual funds traded on Tuesday, 152 declined, 131 advanced and 52 remained unchanged.DS30, the blue-chip index of the DSE, however, dropped 0.13 per cent, or 2.63 points, to close at 1,941.07 points.Shariah index DSES also lost 0.04 per cent, or 0.56 points, to finish at 1,271.59 points.Khulna Power Company led the turnover chart with its shares worth Tk 78.12 crore changing hands.Active Fine Chemicals, BBS Cables, IFAD Autos, Confidence Cement, National Housing Finance, Bangladesh Steel Re-rolling Company, Shasha Denims, United Power Generation Company and Ratanpur Steel Re-rolling Company were the other turnover leaders.National Life Insurance Company gained the most on the day with a 10-per cent increase in its share prices, while IFIL Islamic Mutual Fund-1 was the worst loser, shedding 10 per cent.